Managing Accounting Systems in Organisational Processes

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Part A...........................................................................................................................................1
Different techniques and methods used for management accounting reporting..........................4
Management accounting system and management accounting reporting is integrated within
organisational processes...............................................................................................................5
PART B........................................................................................................................................7
Annex (A)....................................................................................................................................7
Annex (B).....................................................................................................................................7
ACTIVITY 2....................................................................................................................................8
Part A...........................................................................................................................................8
Uses of different planing tools in forecasting budget................................................................10
Annex (c)...................................................................................................................................11
Part B.........................................................................................................................................12
Comparison of how organisations are adapting management accounting systems to respond to
financial problems......................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In business world, the term management accounting is related to the managing,
controlling, analysing, useful information within an organisation that help the manager to make
meaningful decision in order to increase the overall profitability, productivity (Aksoylu and
Aykan, 2013). In general it is the process of developing accurate reports and final accounts at the
end of accounting year that support to give valuable and accurate financial information that are
needed by the internal manager to make day to day effective decision. Internal Accountant or
manager are more focused to collect and analysed the information that provide the detail picture
of company activity in a year so they use the best techniques and technology and accounting
system that improve and overall performance. The process of cost or managerial accounting start
with the determining, evaluating, measuring, examining, interpreting and transferring of useful
financial data with manager that support them to attain the predefined goals within specific time
period. In various system and effective report of management accounting with there importance
and value for integrated business system have been discussed. Additional, the report describe the
valuable costing techniques to calculate and evaluate net profit and proper cost analysis. To
better understand the importance of management accounting Bentley, is selected. The company
is a British manufacture of luxury cars and SUVs that have its Headquarters in Crewe, England.
In this report, this report also focuses on useful planning tool with there advantages and
disadvantages that help in financial stability and resolve financial different financial problems.
ACTIVITY 1
Part A
Management accounting, is referred to the procedure of monitoring, controlling,
recording, analysing, evaluating and reporting of crucial financial data in order to take decision
according to business need and make it productive and profitable. This process is mainly related
with accountants of company that which consists monitoring costs, increasing sales, analysing
and preparing budgets, timely internal audits, determination of past events and business happing
to predict future requirement and the most crucial to assist company leaders to make valuable
decision related to finance of company. The concept of management accounting differ from
financial accounting because the report prepared are helpful for internal manager and other top
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level manager while in reports prepared in financial accounting are presented to external
stakeholders to take meaningful investment decision.
Management accounting system
In business scenario, different type of management accounting system are applied by
manager in order to evaluate and calculate the overall performance during a specific time frame.
These system are mainly focused to evaluate and record the cost linked with manufacture of
goods, set the best price of produced goods, make record for each job related to manufacture of
goods so that valuable decision are made for better functioning of business operation and
maximize result. Significant management accounting system are discussed underneath:
Inventory management system: This system in supportable for entire supply chain so
that process of production keeps on going to maximise the profit of company. With the support
of inventory system manager of company are able to record each and every aspect of business
related to inventory such as raw material availability for production, goods in processed and
actual quantity of finished goods that are ready for sales. In Bentley, management uses this
system to maintain and hold a systematic record of raw parts to prepare luxury cars, total
quantity of these raw goods used in the manufacture process and overall quantity of hand dryer
that are ready for sales. This help respective company to increase their supply chain by
continuously providing finished goods to supplier on the demand this is also helpful for company
to expand business and increase overall profit. This system consider assets of Bentley, raw
materials, supplies and finished products and use of effective tools such as hardware tools to read
bar code labels, handled barcode scanners etc.
Price optimisation system: This in also an important system used by management of
company that is related to fixing price of manufacture goods as per the responses and demands of
customer. It is also used by company to evaluate and ascertain the best selling price of their
product that will help them to recover the production cost and maximize profit to meet the
desired objective. Thus the price optimisation system is crucial component of entire price
management that is effective and essential for profitability of company during a year. In Bentley,
manager uses this system to fix the best price of their hand dryer on the responses of customer.
They also keeps in mind to recover the overall cost involved in production of hand dryer and
ascertain profit to meet the actual objective of company.
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